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PM SVANidhi Scheme 2026

Street Vendor Loan Up to ₹50,000, Digital Payment Cashback & Apply via ULB Guide 2026
Sk Jabedul Haque
May 25, 2026 5 min read 92 views
PM SVANidhi Scheme 2026
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    Quick Answer: PM SVANidhi Scheme 2026 provides collateral-free working capital loans to street vendors in three tranches: ₹15,000 (1st), ₹25,000 (2nd), and ₹50,000 (3rd). Beneficiaries get 7% interest subsidy on timely repayment, digital payment cashback up to ₹1,200/year, and a UPI-linked RuPay Credit Card. Apply at pmsvanidhi.mohua.gov.in or through your Urban Local Body.

    What You'll Learn

    • Updated 2026 loan amounts: ₹15,000 → ₹25,000 → ₹50,000 and how the tranche progression works.
    • How the new PM SVANidhi Credit Card launched in January 2026 provides UPI-linked digital credit.
    • 7% interest subsidy explained: how timely repayment effectively reduces your loan cost to near zero.
    • Complete online application process with step-by-step guide for the official portal.
    • Eligibility criteria including Certificate of Vending (CoV), Letter of Recommendation (LoR), and age requirements.

    PM SVANidhi Scheme 2026 Overview: Empowering India's Street Vendors

    PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) is a Central Sector micro-credit scheme launched on June 1, 2020 by the Ministry of Housing and Urban Affairs (MoHUA). The scheme provides collateral-free working capital loans to street vendors to help them restart and grow their businesses, especially after the economic disruption caused by the COVID-19 pandemic.

    As of May 2026, the scheme has covered over 55 lakh street vendors across India, with more than 96 lakh loans sanctioned and over ₹8,600 crore disbursed. Digital transactions on the platform have crossed an impressive ₹9 lakh crore, showcasing the massive adoption of digital payments among India's street vendor community.

    PM SVANidhi Loan Amounts 2026: Revised Tranches

    In August 2025, the Union Cabinet approved a major restructuring of the PM SVANidhi scheme. The loan amounts for the first two tranches were increased significantly. The current loan structure effective in 2026 is:

    Tranche Loan Amount Loan Tenure Previous Amount
    1st Tranche ₹15,000 12 months ₹10,000
    2nd Tranche ₹25,000 18 months ₹20,000
    3rd Tranche ₹50,000 36 months ₹50,000 (unchanged)

    Key points about the loan structure: Each subsequent tranche is only available after the full repayment of the previous loan. Prepayment is allowed without any penalty. All loans are completely collateral-free, making them accessible to even the most disadvantaged street vendors.

    PM SVANidhi Credit Card 2026: New Digital Credit Facility

    One of the most significant additions to the scheme was the launch of the PM SVANidhi Credit Card by Prime Minister Narendra Modi on January 23, 2026, in Thiruvananthapuram, Kerala. This UPI-linked RuPay Credit Card is available to beneficiaries who have successfully repaid their second tranche loan and are eligible for the third tranche.

    Key features of the PM SVANidhi Credit Card:

    • Interest-free digital credit of up to ₹10,000 per month for purchases from wholesalers.
    • Reward points on every digital transaction made through the card.
    • UPI-linked for seamless digital payments at any UPI-enabled merchant.
    • Cashback on both retail digital sales (to customers) and wholesale digital purchases.
    • >Credit limit enhancement based on repayment history and transaction volume.

    The credit card facility is designed to break the cycle of street vendors depending on informal moneylenders who charge exorbitant interest rates. It provides them with dignified, formal credit access integrated with the modern UPI payment ecosystem.

    PM SVANidhi Eligibility Criteria 2026

    To qualify for the PM SVANidhi scheme, a street vendor must meet the following conditions:

    • Age: Minimum 18 years of age at the time of application.
    • Vending Status: Must be engaged in street vending in an urban or peri-urban area. This includes hawkers, fruit and vegetable sellers, tea vendors, cart operators, food stall owners, and small service providers.
    • Certificate of Vending (CoV): Must possess a Certificate of Vending issued by the Urban Local Body (ULB) or Town Vending Committee (TVC).
    • Letter of Recommendation (LoR): Vendors without a CoV can apply with a Letter of Recommendation from the ULB, verifying they are identified as street vendors in the ULB survey.
    • Loan Repayment History: For higher tranches, the vendor must have a clean repayment record on previous loans under the scheme.
    • Priority Categories: Preference is given to women vendors, SC/ST vendors, and persons with disabilities.

    The scheme originally required vendors to have been vending on or before March 24, 2020. However, the restructured scheme has expanded coverage to include 50 lakh new beneficiaries who may not have been previously covered under this provision.

    PM SVANidhi Interest Subsidy: 7% Benefit Explained

    One of the most attractive features of the PM SVANidhi scheme is the 7% interest subsidy provided to vendors who repay their loans on time. Here is how it works:

    • The bank charges interest at the prevailing rate (typically 10–12% per annum based on MCLR).
    • Upon timely or early repayment of each monthly installment, the vendor qualifies for a 7% interest subsidy.
    • The subsidy amount is credited directly into the vendor's bank account on a quarterly basis.
    • With the combination of the interest subsidy and digital payment cashback, the effective cost of borrowing becomes near zero for vendors who maintain discipline.

    For example, on a ₹15,000 first tranche loan at 12% annual interest, the total interest for 12 months would be approximately ₹1,800. The 7% subsidy (worth about ₹1,050) brings the effective interest down significantly, and the ₹1,200 annual cashback on digital transactions can more than cover the remaining interest cost.

    PM SVANidhi Digital Payment Cashback: Up to ₹1,200/Year

    To encourage digital transactions among street vendors, the scheme offers cashback incentives structured in two categories:

    Category Details Maximum Cashback
    Retail Digital Sales (to customers) ₹1 per transaction, up to ₹100 per month ₹1,200/year
    Wholesale Digital Purchases Cashback on purchases from wholesalers via digital modes ₹400/year

    To earn the full cashback, vendors need to execute at least 50 eligible digital transactions per month. The cashback is automatically credited to their bank accounts, providing a tangible financial incentive to adopt digital payments and maintain digital records of their business activities.

    How to Apply for PM SVANidhi Loan Online: Step-by-Step Guide

    Applying for the PM SVANidhi scheme can be done entirely online through the official portal. Here is the complete step-by-step process:

    Step 1: Visit the Official Portal

    Go to pmsvanidhi.mohua.gov.in — the official website of the Ministry of Housing and Urban Affairs for the PM SVANidhi scheme. You can also apply through the integrated JanSamarth Portal at jansamarth.in.

    Step 2: Register Your Account

    Click on the "Apply Now" or "Register" button. Enter your mobile number and email address. After receiving the OTP on your mobile, complete the registration process and set a password for your account.

    Step 3: Select Your Bank

    Choose your preferred bank branch from the list of participating Scheduled Commercial Banks. The portal will show nearby bank branches based on your location. You can also apply through your existing bank if they are a scheme participant.

    Step 4: Fill the Application Form

    Complete the online application with: Personal details (name, age, address, contact information), details of vending activity (type of business, location, estimated daily earnings), identification details (Aadhaar, Voter ID, or other valid documents), and bank account information for loan disbursement.

    Step 5: Upload Required Documents

    Upload scanned copies of: Certificate of Vending (CoV) or Letter of Recommendation (LoR) from ULB, identity proof (Aadhaar Card, Voter ID, or PAN Card), address proof, passport-size photograph, bank account details (cancelled cheque or passbook copy), and any business registration documents (if applicable).

    Step 6: Submit and Track

    Review your application for accuracy and submit. You will receive an application reference number. Use this number to track your application status on the portal. The bank will verify your documents, check eligibility, and process the loan. Disbursement typically takes 7–21 working days after application.

    PM SVANidhi Scheme Extension Till 2030

    The Union Cabinet, in its meeting on August 27, 2025, approved the restructuring and extension of the PM SVANidhi scheme's lending period beyond December 31, 2024, until March 31, 2030. This landmark decision came with a total financial outlay of ₹7,332 crore and aims to benefit a total of 1.15 crore beneficiaries, including 50 lakh new street vendors who were not previously covered under the scheme.

    The Budget 2026-27 allocated a 57% increase in funding for the PM SVANidhi scheme, reflecting the government's strong commitment to formalizing the informal sector and providing dignified livelihood opportunities to urban street vendors.

    SVANidhi se Samriddhi: Linkages with 8 Welfare Schemes

    Under the "SVANidhi se Samriddhi" initiative, PM SVANidhi beneficiaries are connected to eight other Central welfare schemes to ensure holistic development. These linkages include:

    • PM Jan Dhan Yojana — for basic banking access and financial inclusion.
    • PM Suraksha Bima Yojana (PMSBY) — accidental insurance cover of ₹2 lakh.
    • PM Jeevan Jyoti Bima Yojana (PMJJBY) — life insurance cover of ₹2 lakh.
    • Atal Pension Yojana (APY) — retirement pension for old age security.
    • PM Mudra Yojana — graduation pathway for higher loan amounts up to ₹10 lakh.
    • Ayushman Bharat PM-JAY — health insurance cover of up to ₹5 lakh per family.
    • e-Shram Card — registration of unorganized workers in a national database.
    • Skill Development Programs — training and upskilling through the Skill India Mission.

    As part of this integration, over 47 lakh street vendors have been profiled and linked to these schemes, creating a comprehensive social security net for one of India's most vulnerable urban worker segments.

    Benefits of PM SVANidhi Scheme for Street Vendors

    Beyond the direct financial assistance, the scheme offers multiple layered benefits:

    • Collateral-Free Access: No need to pledge assets or provide guarantors — loans are backed by CGTMSE coverage for the first ₹10,000, making them accessible to the poorest vendors.
    • Progressive Loan Growth: Timely repayment of smaller loans unlocks progressively larger loans (₹15,000 → ₹25,000 → ₹50,000), allowing vendors to scale their businesses.
    • No Prepayment Penalty: Vendors can repay loans before the scheduled tenure ends without any additional charges, saving on interest costs.
    • Digital Financial Inclusion: The scheme has pioneered UPI adoption among street vendors, with ₹9 lakh crore in digital transactions processed.
    • Formal Credit History: Successful repayment builds a formal credit history for vendors, opening doors to mainstream banking products in the future.
    • Dignity and Empowerment: Street vendors gain formal recognition as legitimate business operators with legal identity through their CoV or ULB registration.

    PM SVANidhi Beneficiary List and Status Check

    Beneficiaries can check their application status and loan details through multiple channels:

    • Online Portal: Log in to pmsvanidhi.mohua.gov.in and navigate to the "Track Application" section using your application reference number.
    • Bank Branch: Visit your designated bank branch with your application reference number and ID proof.
    • JanSamarth Portal: Check the integrated portal at jansamarth.in using your registered mobile number.
    • ULB Office: Visit your Urban Local Body office with your Certificate of Vending for assistance with status inquiries.

    Last Updated: May 31, 2026 | Source: Ministry of Housing and Urban Affairs (Official Website)

    Frequently Asked Questions

    PM SVANidhi (Prime Minister Street Vendor's AtmaNirbhar Nidhi) is a Central Sector micro-credit scheme launched on June 1, 2020 by the Ministry of Housing and Urban Affairs. It provides collateral-free working capital loans up to ₹50,000 to street vendors in three progressive tranches, along with a 7% interest subsidy and digital payment cashback.
    Under the revised loan structure effective from August 2025, the first tranche loan is ₹15,000 (increased from ₹10,000), the second tranche is ₹25,000 (increased from ₹20,000), and the third tranche is ₹50,000 (unchanged). The first tranche has a 12-month tenure, second tranche 18 months, and third tranche 36 months.
    Yes, the Union Cabinet on August 27, 2025 approved the extension of the lending period under PM SVANidhi scheme beyond December 31, 2024 until March 31, 2030. The restructured scheme has a total outlay of ₹7,332 crore and aims to benefit 1.15 crore beneficiaries, including 50 lakh new street vendors.
    The PM SVANidhi Credit Card is a UPI-linked RuPay Credit Card launched by PM Narendra Modi on January 23, 2026. It provides interest-free digital credit of up to ₹10,000 per month to beneficiaries who have successfully repaid their second tranche loan. It includes reward points, cashback on transactions, and seamless UPI payments.
    Visit pmsvanidhi.mohua.gov.in and register with your mobile number and email. Select your preferred bank branch, fill the application form with personal and business details, upload documents (Certificate of Vending, Aadhaar, address proof, photograph), and submit. Track your application using the reference number provided.
    The scheme provides a 7% interest subsidy per annum on working capital loans. On timely or early repayment of each monthly installment, the subsidy amount is credited directly into the vendor's bank account on a quarterly basis. Combined with the digital cashback, this makes the effective borrowing cost near zero for disciplined vendors.
    You need: (1) Certificate of Vending (CoV) or Letter of Recommendation (LoR) from Urban Local Body, (2) Aadhaar Card, (3) address proof (Voter ID or utility bill), (4) 2 passport-size photographs, (5) bank account details (cancelled cheque), (6) business declaration, and (7) mobile number registered with Aadhaar.
    Street vendors aged 18+ years engaged in urban or peri-urban vending (hawkers, fruit sellers, tea vendors, cart operators, food stalls, service providers) possessing a Certificate of Vending or Letter of Recommendation from their Urban Local Body. Women, SC/ST, and persons with disabilities get preference.
    Vendors earn ₹1 per digital transaction (up to ₹100 per month) on retail sales to customers — maximum ₹1,200 per year. Additionally, wholesale digital purchases earn up to ₹400 per year in cashback. To qualify for the full ₹100 monthly cashback, vendors must execute at least 50 eligible digital transactions per month.
    As of May 2026, over 55 lakh street vendors have been covered under the scheme. More than 96 lakh loans have been sanctioned with over ₹8,600 crore disbursed. Digital transactions on the platform have crossed ₹9 lakh crore. The scheme has also profiled and linked over 47 lakh vendors to 8 other welfare schemes.
    Sk Jabedul Haque

    Sk Jabedul Haque

    Founder & Chief Editor

    Building India's most trusted finance education platform — simplifying news, calculators, and market trends so anyone can understand and invest confidently.